Residential Real Estate Market in the Process of the Emergence of Macroeconomic Imbalances

Ewa Kucharska-Stasiak ()
Additional contact information
Ewa Kucharska-Stasiak: Uniwersytet Łódzki

World of Real Estate Journal (Swiat Nieruchomosci), 2016, issue 96, 5-10

Abstract: The origins of the 2007-2008 crisis are believed to lie in the strong disturbance of macroeconomic balances. Many economists see the causes of the crisis in the disorder in the financial market and the real estate market. The theoretical layer of the paper seeks to demonstrate that the real estate market is only indirectly involved in the development of the crisis. This market, however, should be monitored, since the strong changes on the demand side, fuelled by the access to cheap loans and speculative behaviour may cause demand shocks which lead to the development of price bubbles, manifested in the violent price increases, unjustified by fundamental values. When the bubbles burst, a wave of difficult loans appears, deepening recessions and slowing down the subsequent economic recovery. The empirical layer undertakes the assessment of the real estate market as an environment which contributes to the emergence of macroeconomic imbalances.

Keywords: real estate market; market imbalances; price bubbles (search for similar items in EconPapers)
JEL-codes: E30 R30 R32 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
http://swiatnieruchomosci.krakow.pl/pl/sklep/pojed ... 6/artyku%C5%82-96-01 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kra:journl:y:2016:i:96:p:5-10

DOI: 10.14659/worej.2016.96.01

Access Statistics for this article

More articles in World of Real Estate Journal (Swiat Nieruchomosci) from Fundacja Uniwersytetu Ekonomicznego w Krakowie Contact information at EDIRC.
Bibliographic data for series maintained by Karolina Orzeł ().